Consultancy Services to Conduct a Barrier Analysis for Transitioning to Consumption-Based Heat Tariffs in Mongolia

• Country: South Korea
• Summary: Consultancy Services to Conduct a Barrier Analysis for Transitioning to Consumption-Based Heat Tariffs in Mongolia
• KRT Ref No: 89572087
• Deadline: 20 Oct 2023
• Financier: Other Funding Agencies
• Purchaser Ownership: Government
• Tender Value: Refer Document
• Notice Type: Tender
• Document Ref. No.: 100008980
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• Description:
• Request for proposals are invited for Consultancy Services to Conduct a Barrier Analysis for Transitioning to Consumption-Based Heat Tariffs in Mongolia Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) in cooperation with Ministry of Construction and Urban Development (MCUD), Municipality of Ulaanbaatar City (MUB) carrying out the Implementation phase 1 of the Energy Performance Contracting for Residential Retrofitting in Ulaanbaatar City (the Project), funded by the Mitigation Action Facility. GGGI is subcontracted by GIZ to support the Implementation Phase 1 of the Project, including this assignment. The Project envisions transforming the residential building sector in Mongolia to be energy efficient and facilitating implementation of the Nationally Determined Contribution targets. The Project is designed to jump-start a large-scale thermo-technical retrofitting (TTR) program and create the market conditions to scale up investments in energy efficiency. The Project consists of technical cooperation (TC) and financial cooperation (FC) to break the deadlock of financing Mongolia-s residential building energy efficiency. The FC component introduces the Building Energy Efficiency Facility (BEEF) with a revolving nature to mobilize funding from public and private sectors and scale up the residential retrofitting. Within the scope of the Project, at least 150 precast building blocks will be retrofitted, and a revolving BEEF will be established to help cover the upfront costs of the TTR and mobilize funding from both the public and private sectors to scale up retrofitting. TC will be a crosscutting component to facilitate the FC and transform the sector. In the The work shall begin in October 2023 for a duration of up to two months. The Firm shall be responsible for conducting barrier analysis for transitioning to consumptions-based heat billing and heat allocation method. The Firm shall undertake situational and barrier analysis in consultations with key stakeholders and work closely with GGGI and GIZ during the contracting process. The Firm, as a registered professional firm with knowledge of and expertise in Mongolian energy sector, heat tariff calculation, energy regulatory environment shall analyze current circumstances, identify barriers and challenges, identify, evaluate (applicability) and propose appropriate heat cost allocation method, and propose options and approaches for transitioning towards consumption-based billing. It is the Firm-s role to take all action and carry out barrier analysis in consultation with and subject to the approval of key stakeholder and where necessary with GGGI/GIZ. The Firm shall produce a detailed list of actions to be taken and to be revised to reflect changing circumstances as needed. 2) Scope of Work Under this assignment, the Firm shall cover the scope of the barrier analysis for transitioning towards consumption-based heat billing as described below. Part 1. Barriers and opportunities • Review and analyze current circumstances, including technical, economic, institutional, regulatory framework for heat billing and heat cost allocation for different consumer segments (both residential and industrial/commercial consumers). This includes the stock-taking of different types of buildings. • Review current policy and legislative framework in respect to the heat cost allocation and billing methodology for residential and industrial/commercial consumers. Assess the readiness of the legislative framework to adopt consumption-based billing and cost allocation. • Investigate, analyze, and propose the conditions precedent for transitioning towards consumptions-based billing for residential buildings (depending on current circumstances), including but not limited to: o New buildings: The legal and regulatory requirements for newly constructed buildings remain unclear. While there are requirements for installing heat meters at apartment levels, it seems not adequately translated into the regulatory requirements and implemented/practiced. Since 2017 (when the requirements were included in the law) around 30,000 units have been commissioned, unfortunately mostly with heat meters installed at buildings levels only. o Buildings with heat meters or without heat meters but with systems that allow heat meters installation at apartments without major modernization - An estimated 30% of buildings (mostly built post 2015) are installed or can be installed heat meters without major renovation in the heating systems of the apartments. Still residents are charged based on floor area. There are contractual, regulatory, and legal issues to be resolved and proposed. o Buildings without heat meters and installation of heat meters require major renovation. Erected mostly pre-2000 (including precast panel buildings), these buildings are equipped with single-string system. Installing heat meters at apartment level requires serious modernization (e.g., shifting from single-string to double-string piping). Some of the buildings are equipped with heat meters at building level (usually at the basement of the building). Investment requirements for modernization and alternative/practical technical solutions for consumption-based billing are investigated, evaluated and proposed. In addition to proposing technical solutions that are applicable, current regulatory requirements are tested and where necessary legal and/or regulatory bottlenecks are identified, and solutions proposed.
• Documents:

 Tender Notice